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Politics & Government

Freeholders Hope for Lower Interest Payments to save $1M

Bonds at issue in current economy

Ocean County officials plan to take advantage of low interest rates and an improved county credit rating to pare about $1 million in interest costs from $25 million worth of 20-year bonds issued in 2004 and 2005.

Freeholder John C. Bartlett Jr. explained that the earlier bonds, issued at interest rates of 4 and 4.5 percent, can now be called in by county officials and refinanced. The new interest rate is estimated at 2.4 percent by the county’s financial advisors if they are sold by August, he explained.

 The 20-year term of the bonds will not be extended as part of the refinancing, he said.

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“It costs money to do this,’’ he said, but the “net savings will be over $1 million.’’

 The refinancing is attractive, he said, not only because of continued low interest rates, but because the county’s bond rating rose from AA1 when the borrowing originally took place, to AAA now.

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Bartlett unveiled the proposal late Wednesday, with the freeholders expected to authorize it when the meet at 4 p.m. June 15 at 101 Hooper Avenue in Toms River.

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